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Figure 1: AGL Energy Ltd 12 month chart


AGL Energy (AGL) beat expectations as cooler winter boosted demand

 Electricity generator and retailer, AGL Energy (AGL) today reported its half year numbers for the 2015 financial year. AGL result beat market expectations, statutory net profit after tax lifted by 18% to $308 million when the market didn’t expect AGL to break the $300 million mark.

 Revenues fell slightly while margins were higher from AGL’s Retail Energy unit, helped by higher prices and demand. Electricity and gas demand improved as weather conditions normalised over the half compared to the very warm winter in 2013.

 Merchant earnings lifted to $852 million helped by a lift in wholesale gas sales, AGL Upstream gas still reported a loss, as expected, but there was an improvement over the period.

 Net Profit included a loss of $128 million after tax in relation to significant Items; the cost of its purchase of Macquarie Generation, restructure costs (AGL retail units) and the cost of the repeal of the carbon tax. AGL incurred costs in removing the carbon tax from customer statements and set up costs for accounting changes within its business of $8 million. AGL also lost income from transitional assistance at AGL Loy Yang power plant.

 Long-standing AGL CEO Michael Fraser will be replaced by Andrew Vesey, after this result and will retire by the end of June, 2015.

 AGL will pay $0.30 interim dividend to shareholders on the 25th of March 2015


You can see all of CommSec’s reporting season analysis by clicking here.

Juliana Roadley, Market Analyst,